The golden rule for creating a successful business is to find a
niche and then fill it. That's exactly what Manuel Iglesias and
Terry Jaramillo are doing. The two are members of the management
team behind Capital International SBIC LP, the first Small Business
Investment Company (SBIC) to target Latino businesses. (The company
gives some loans to non-Latino businesses, too.) Specialized SBICs
typically serve niche markets, but Iglesias and Jaramillo saw an
unmet need.

"With the consolidation of the banking system, local banks
that served small, homegrown Latino businesses have
disappeared," says Iglesias, whose company targets businesses
primarily in Florida, New York and Puerto Rico. "Now these
businesses are [dealing with] national banks not in touch with the
community."

Capital International SBIC is a $5 million fund with the
potential to access another $15 million. It targets companies two
to four years old, with positive cash flows and proven track
records, that are seeking $500,000 to $1 million. The loan process
takes about two to six weeks.

According to Jaramillo, loan terms start at a minimum of five
years; the company takes a 2 Â½ to 15 percent stake in the
company, depending on its value and size. Capital International
SBIC typically expects a seat on a company's board of directors
and will recommend and monitor solutions to any deficiencies.

Figuratively Speaking

When it comes to investing, don't believe everything you
hear.

The media love "top" lists, and we're no
exception. This month, we get a little help from Louis
Rukeyser'sBook of Lists (Henry Holt and Co. Inc.).
The subject? Mary Farrell's List of the Top 10 Euphemisms When
an Investment is Wrong. Farrell, a small-business investment
expert, helps entrepreneurs read between the lines:

1. "The company's expenses were unexpectedly
high."

Translation: I overestimated margins.

2. "Sales were less than expected."

Translation: I didn't notice all those competitors fighting
for market share.

3. "Unseasonably cold weather hurt sales in the
first quarter."

Translation: Of course it's always cold January through
March, but I don't want to admit I was wrong.

4. "Earnings were disappointing."

Translation: Not for the company, which was right on plan, but I
was hoping for a miracle to bail out this recommendation.

5. "We had a major earnings
shortfall."

Translation: I don't have a clue what's going on.

6. "I'm fine-tuning my estimate."

Translation: What's a 50-percent cut among friends?

7. "Although our long-term recommendations remain
intact, there are a few short-term problems."

Translation: Thank God in the long run, we'll all be dead
and I won't have to answer for this fiasco.

8. "Management is unavailable for
comment."

Translation: At least I've bought a little time to think up
a creative explanation for this disaster.